Meat prices
skyrocket in Zimbabwe as producers
attempt to keep up with prevailing 'black market'

by Tichaona Chifamba
HARARE (Xinhua) --Meat prices have
skyrocketed in many butcheries in Harare and other cities in
Zimbabwe with consumers now having to pay almost double after
producers hiked their prices citing the depreciation of the
surrogate bond notes against the U.S. dollar.

A butcher
in Sunridge, a medium-density suburb in northwestern Harare,
Mike Nyakarenga, said rising prices have resulted in low sales
as many residents can no longer afford the meat.

Open-air barbecues, a favorite pastime for many Zimbabweans,
have also gone down as more and more people prefer meat for the
pot at home to having it while imbibing with friends.

While the official exchange rate of the bond notes to the
U.S. dollar remains at 1:1, the situation is different in the
market, where it is more than 2:1, prompting some sellers to peg
the prices of their products in U.S. dollars.

Nyakarenga, who sells mainly commercial grade beef, said he
used to buy it at 4.50 per kg but the price had since gone up to
7 dollars per kg. His selling price is now at least 10 dollars
per kg depending on the cut.

"Chicken, which we used to buy at 3.30 per kg, now costs 5
dollars while pork is now 6.25 dollars, up from 3.90 per kg.

"The prices keep going up and people are no longer buying as
much as they used to," he said.

Tendai Mapuranga said his family has cut down on meat but he
would strive to ensure that they continued to have it for
dinner.

"Meat, just like maize, is a staple food for most families.

"I can’t imagine my family having to go without it, but we
have definitely reduced the amount we take per sitting.

"If in the past each member of the family had three pieces,
now we have two or one.

"That is the reality," he said.

Some people have already started "meat clubs" through which
they go to nearby farms and rural areas to buy at cheaper prices
and share.

Butcheries run by meat producers have their products at
slightly lower prices, attracting long queues of buyers.

The prices of basic commodities have been rising drastically
in recent weeks after Minister of Finance and Economic
Development Mthuli Ncube acknowledged that there was no real
parity between the U.S. dollar and the bond note.

This prompted the black market to flourish with rates more
than trebling within a short space of time..

HARARE Zimbabwe (Xinhua) -- Zimbabwe’s net revenue for the third
quarter of 2018 grew by 22.56 percent to some 1.19 billion U.S.
dollars from 967.76 million realized during the same period last
year, Ministry of Finance permanent secretary George Guvamatanga
said Thursday.

Guvamatanga attributed the increase in both gross and net
collections to various revenue enhancement strategies by the
Zimbabwe Revenue Authority, increased use of plastic money and
sustained efforts in fighting corruption.

"The positive revenue performance is attributed to concerted
effort by the Authority through rigorous revenue enhancement
measures, an unwavering stance against corruption and increased
use of electronic and mobile money in transacting which resulted
in improved compliance," Guvamatanga said in a statement.

The major contributors to revenue were excise duty which
contributed 21 percent, net value added tax on local sales (19
percent) and individual tax which contributed 18 percent,
Guvamatanga said.

The permanent secretary added that the positive revenue
performance in the period under review was an indication of an
improving operating environment for business.

However, Guvamatanga bemoaned high unpaid taxes, which rose
from 4.54 billion dollars in the second quarter to 4.55 billion
dollars in the third quarter.

The positive third quarter revenue performance came after
finance minister Mthuli Ncube recently introduced a 2 cents tax
on every dollar transacted electronically in a bid to boost
government revenue to finance social services.

Guvamatanga said the fiscal measures announced by the finance
minister would widen the tax base and bring more revenue to the
fiscus.

The country is also experiencing rising inflation due to
distortions in currency exchange rates on the black market.

Guvamatanga said rising inflation, which quickened to 5.39
percent in September and the highest since the country
dollarized in 2009, remained a major threat to economic growth
which is expected to accelerate to 6.3 percent in 2018, up from
the initially projected 4.5 percent..

The company on Friday announced that Soventix’ s subsidiary
Soventix South Africa will start constructing the Harava project
across 40 hectares of land in the Bwoni Village, Seke Rural
District, South West of Zimbabwe’s capital Harare.

Invest Solar Africa said local villagers will own 10 percent
of the project through a Community Development Share Ownership
Trust.

According to the company, the fixed-tilt PV project will
include 66,528 solar modules and 192 string inverters, and have
an approximate energy generation capacity of 40GWh per year.

Jean-Paul de Villiers, Managing Director of Soventix South
Africa is optimistic about the project’s potential.

"Pioneering such projects into Africa has its challenges,
however through commitment and tenacity both Soventix SA and the
developer have overcome," said de Villiers.

The photovoltaic market in Zimbabwe is still in the initial
stage, though the country offers great weather conditions to use
the potential of solar energy.

"Solar energy in southern Africa has convincing prospects for
the population, local economy and international investors."

Meanwhile energy costs in Zimbabwe, South Africa, Botswana
and Zambia are high, while businesses do not have reliable power
supply, giving strong opportunities for solar deployment. .